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Pecan Company Sold a Computer for $50,000

Question 49

Multiple Choice

Pecan Company sold a computer for $50,000. The computer's original cost was $250,000, and the accumulated depreciation at the date of sale was $180,000. The sale of the computer should appear on Pecan's annual statement of cash flows (indirect method) as


A) a reduction in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $50,000.
B) an increase in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $50,000.
C) a reduction in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $70,000.
D) an increase in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $70,000.

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